BuddyPress.org

I think I might have a solution.

There is some serious confusion internally between what to do with Bpthemes. if you load Bpthemes into /wp-content/bbthemes, then there is no red dialogue Box in the themes section of buddypress. However, using other themes will break. Conversely, if you load the themes into the wp-content/themes folder, they appear in appearences->themes, and everything works! So, the issue here is theme support. There are conflicting instructions in the v1.1 release.